OREANDA-NEWS. Oleo e Gas Participacoes announces that it has entered into an Export Prepayment Agreement, by means of which certain investors party thereto from time to time (the “Lenders”) have extended to the Company's controlled company, OGX Petroleo e Gas S.A. (“OGX”), a financing facility of up to USD 50,000,000 (“Loan”), which will be subscribed at a discount of 20%, the net proceeds of which will be used by OGX to finance exports and to pay related fees and expenses.

The Loan is an important step towards and part of the Company's restructuring contemplated under the agreement reached with certain holders of bonds representing the majority of the outstanding bonds issued by its subsidiary OGX Austria GmbH, as announced by the Company on the Material Fact Notice of December 24, 2013.

The Loan has a maturity of 60 days from the initial disbursement, but shall mandatorily prepaid under certain events, including the entering, by OGX, into the debtor-in-possession financing, which conditions were disclosed by the Company on the Material Fact Notice of December 24, 2013.

As a condition for, and to induce the Lenders to enter into, the Loan, the Company, OGX and other entities pertaining to the OGX Group established certain collaterals in favor of the Lenders to secure OGX's obligations under the Loan. Certain collaterals include permanent assets of the Company or OGX and therefore require approval by the Bankruptcy Court overseeing the Company's judicial reorganization, which approval will be requested in accordance with the appropriate legal provisions. The collaterals also respect third party existing liens.

The Loan is a post-petition super-priority claim, in accordance with article 67 of the Brazilian Bankruptcy Law.